Elon Musk’s X Files Lawsuit Against Advertisers

Elon Musk’s social media platform X (formerly Twitter) has taken legal action against a group of advertisers, alleging a coordinated boycott that has cost the company billions in revenue. The lawsuit, filed in federal court, names several major advertisers and companies as defendants, including the World Federation of Advertisers, Global Alliance for Responsible Media, Unilever, Mars, CVS Health, and Ørsted.

The Allegations

X claims that these entities conspired to organize an illegal boycott following Musk’s acquisition of Twitter in late 2022. The company argues that this action has not only resulted in substantial financial losses but also threatens the platform’s future viability and restricts the marketplace of ideas.

Elon Musk's X sues advertisers, alleging a “massive advertiser boycott” deprived the social platform of billions of dollars. https://t.co/8pTlE4mhpQ

— The Associated Press (@AP) August 6, 2024

Legal Challenges

X CEO Linda Yaccarino stated in a video announcement, “They conspired to boycott X, which threatens our ability to thrive in the future.”

However, legal experts suggest that the case faces significant hurdles. Bill Baer, former assistant attorney general for the Department of Justice’s antitrust division, noted, “As a general rule, a politically motivated boycott is not an antitrust violation. It is protected speech under our First Amendment.”

None of the advertisers involved in the lawsuit have issued public responses to the lawsuit at this time. However, according to Sky News, Unilever, one of the companies sued, said during a Congressional hearing, “Unilever, and Unilever alone, controls our advertising spending. No platform has a right to our advertising dollar.”

Broader Context

This legal action is part of X’s broader efforts to revive its core advertising business, which has faced challenges since Musk’s takeover. It follows previous lawsuits against organizations like the Center for Countering Digital Hate and Media Matters, reflecting ongoing tensions between the platform and various entities concerned about content moderation and brand safety.